The Private Sector Advisory Council (PSAC) said implementing the Value-Added Tax (VAT) refund program for non-resident tourists will boost the competitiveness of tourism sector.
“This game-changer for Philippine tourism is a direct response to President Ferdinand R. Marcos Jr.’s call for policies that enhance the visitor experience and drive economic growth,” said PSAC lead convenor and Aboitiz Group president and chief executive Sabin Aboitiz.
The VAT refund program is projected to boost tourist spending by at least 30 percent, creating more opportunities for micro, small, and medium enterprises (MSMEs) while showcasing the creativity and craftsmanship of Filipino artisans.
Under the implementing rules and regulations (IRR), non-resident tourists can reclaim VAT on locally purchased goods valued at a minimum of P3,000 from accredited establishments, provided these items are exported within 60 days.
Eligible products include clothing, electronics, jewelry, souvenirs, and other tangible goods intended for personal use.
To ensure efficient implementation, the Department of Finance (DOF) is mandated to engage reputable VAT refund operators, using technology-driven solutions to facilitate seamless transactions, whether electronically or in cash.
The program is part of a broader set of PSAC-backed initiatives, including the expansion of hotel incentives under the CREATE MORE Act, aimed at reinforcing the government’s long-term tourism strategy.
The Department of Finance, the Bureau of Customs (BOC) and the Bureau of Internal Revenue signed the IRR for Republic Act No. 12079, also known as the VAT Refund for Non-Resident Tourists Act, on March 24, 2025.
Tourism Secretary Christina Garcia-Frasco and Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick Go witnessed the signing.